Find Your Perfect Policy: 866-843-5386

Last updated: May 23, 2024

Average Cost of Car Insurance in Tennessee in 2024

How much is car insurance in the Volunteer State?

Twitter brand
Facebook brand
Linkedin brand
Reddit brand
Envelop icon

Considered by many to be the home of country and rock and roll music, Tennessee is also known for its diverse food and sprawling national parks. Exploring all that the state has to offer usually entails a fair amount of time on the road, and in this article we will breakdown information that all former, current, and new Tennessee residents need to know about car insurance costs in the state. Whether you are in the urban centers of Nashville and Memphis or the rolling hills of Great Smoky Mountains National Park, we’ve got you covered.

In what follows, we will discuss factors that influence how much car insurance costs the average driver, including things like credit score, gender, age, and city.

Tennessee Car Insurance Rates on Average

Across all demographics, the average cost of car insurance in the state of Tennessee in 2024 was $1,024 a year, which breaks down to about $85 a month, assuming you opt for full coverage car insurance.

The national average for full coverage car insurance in the United States is $1,924, or about $160. Compared nationally, the average cost of full coverage car insurance in Tennessee can be found for almost 50 percent cheaper than the national average.

By Age

Like most states, teen drivers face the highest costs for car insurance in Tennessee. The average teenager in Tennessee pays $3,835 annually for car insurance, compared to an average of $1,996 for drivers in their 20s. On the flip side, senior drivers in Tennessee have rates lower than the state average, with a sharp price drop for drivers in their 60s. Notice, however, that this price spikes again for drivers in their 70s.

Age Average annual cost of car insurance
16 $4,373
17 $4,115
18 $3,980
19 $2,873
20s $1,996
30s $1,717
40s $1,631
50s $1,540
60s $1,291
70s $1,791

By Gender

Men pay a little more than women for car insurance in Tennessee, which is par for the course compared to all other states. The difference is biggest for teen drivers, and gradually becomes less significant.

Gender Average annual cost of car insurance
Male $1,056
Female $1,011

By Coverage Level

One way to save money on car insurance is by opting for minimum coverage instead of full coverage. In Tennessee, doing so will save you around $900 a year, with annual minimum coverage costing a cool $500 compared to the full coverage option of $1,406. However, minimum coverage may not offer enough protection. We often recommend getting the full coverage to be safe, but this decision varies based on your personal situation.

Coverage level Average annual cost of car insurance
Minimum $500
Full $1,406

By Credit Score

One area that can have a heavy impact on car insurance costs is your credit score. Individuals with poor credit scores can expect to pay roughly $1,200 more for car insurance in Tennessee per year than those with good credit.

Credit score Average annual cost of car insurance
Poor $2,327
Average $1,272
Good $1,243
Excellent $939

By Driving History

Similarly, expect higher costs if you’ve had a speeding ticket, at-fault accident or DUI. Individuals with a DUI pay over double the average than a driver with a clean record.


Learn more about how a speeding ticket impacts your insurance in Tennessee.

Driving history Average annual cost of car insurance
Clean driving record $1,024
Speeding ticket $1,396
Accident $1,690
DUI $2,136

By Company

Car insurance rates also differ across companies. In Tennessee, the cheapest auto insurer is USAA, which caters to active military, veterans, and their families. As a state known for its long traditions of military service, an honor which garnered its nickname “The Volunteer State” after the Civil War, this benefit might apply to you and your loved ones. Other good options in Tennessee for non-military members include State Farm and GEICO.

Company Average annual cost of car insurance
Allstate $1,270
GEICO $1,028
Progressive $1,485
State Farm $811
Travelers $1,178
USAA $797

Cheap Car Insurance Cost in Tennessee

Looking for cheap car insurance in Tennessee? These companies have the lowest rates for different demographics.

Demographic Cheapest company Annual rate
Male State Farm $1,307
Female State Farm $1,127
Male teens Erie Insurance $3,102
Female teens Erie Insurance $2,659
Full coverage Erie Insurance $1,284
Minimum coverage USAA $797
Bad credit USAA $1,316
Speeding ticket USAA $894
Recent accident State Farm $988
DUI State Farm $912
16 years old Erie Insurance $2,988
18 years old USAA $2,488
20s USAA $1,160
30s Auto-Owners Insurance $920
60s USAA $694

How to Save on Car Insurance in Tennessee

Are you trying to save a few bucks on your auto insurance? Much like other states, some of the best ways to save money on car insurance in Tennessee are to explore specific discounts—such as defensive driver bonuses—as well as maintaining a clean driving record, and increasing your deductible.

Also, it is always important to compare quotes across multiple companies and policies to find the best deal. Never settle on your first option.

Finally, if you’re still struggling with auto insurance bills, as a last resort you might consider trading in your vehicle. Trucks, luxury and sports cars, and other high value vehicles are more expensive to insure than used cars, minivans, and hatchbacks.

Minimum Car Insurance in Tennessee

Tennessee’s minimum coverage requirements include three essential components, sometimes referred to as 25/50/25:

  • $25,000 for each bodily injury or death per accident
  • $50,000 for total bodily injury or death accident
  • $25,000 property damage per accident1

This coverage is similar to the minimum requirements in many other states. For what it’s worth, we still recommend opting for higher liability limits.

Alternatively, you can post a bond or deposit cash to the department of revenue totalling $65,000 instead of paying for liability coverage. Opting for minimum coverage, however, might not sufficiently protect your assets in the case of a significant accident. For individuals financing or leasing a vehicle, your lender might also require additional protections such as comprehensive or collision coverage.

Fault Law in Tennessee

Tennessee follows an “at-fault” system for auto insurance claims. This means that after a car accident, the driver who is found to be at-fault (negligent or responsible) for causing the crash is legally and financially liable for the damages and injuries suffered by the other parties involved. The at-fault driver’s insurance company is responsible for paying claims up to the limits of their liability coverage. If the at-fault driver’s insurance limits are insufficient to cover all damages, the injured parties may be able to seek additional compensation from their own uninsured/underinsured motorist coverage or even sue the at-fault driver personally.


In most states, including Tennessee, motorists convicted of serious traffic violations like a DUI or driving uninsured might be required to obtain an SR-22 form. This can be obtained through your current insurer, who then forwards the certificate to the Tennessee Department of Safety (DOS). The SR-22 proves you hold minimum insurance requirements in the state. If you no longer own a car, you may have to purchase a non-owner policy in order to file the SR-22.


Although Tennessee’s insurance rates are well below the national average, young drivers, drivers with poor credit, and those with a checkered driving record will still need to shop around to limit the cost of their premiums. We recommend comparing quotes from different insurance companies to ensure you are getting the best rates.


Combining more than two decades of expertise linking individuals with leading car insurance companies, has accumulated a large repository of data concerning specific demographic trends in the market. We use this information and expertise on minimum coverage requirements, fault systems, SR-22s/FR-44s, and social factors to provide a comprehensive picture of anticipated insurance costs and market projections. Accuracy and transparency are our ultimate goal, and our methodology reflects that.

Frequently Asked Questions

Is car insurance required in Tennessee?

Yes, Tennessee law requires drivers to have car insurance. Unless you qualify for an exemption or special case, you will need to purchase auto insurance for your vehicle. Uninsured drivers face the possibility of $300 or higher fines, vehicle suspension, and further reinstatement fees for failing to comply with state law.

Do I need proof of insurance to register my vehicle in Tennessee?

Yes, you must provide proof of insurance before registering your vehicle in Tennessee.

How much is first-time car insurance in Tennessee?

On average, first-time car insurance in Tennessee costs $1,406 for full coverage and $500 for minimum coverage.

What is the cheapest full coverage car insurance in Tennessee?

Erie, USAA, and State Farm have some of the cheapest full coverage car insurance rates in Tennessee for drivers with clean records. For drivers with speeding tickets, at-fault accidents, DUIs, or low credit, Farm Bureau and Progressive have some of the cheapest full coverage rates.


  1. DIFD-1 – Insurance Verification Overview. TN Department of Revenue. (2024).